Sell-Off Resumes, Fed Yawns At Correction -- U.S. Commentary

Traders shrugged off some upbeat corporate earnings, and the major averages were firmly negative after an initial uptick at the start of the session.

The Dow Jones Industrial Average dropped 300 points, or 1.2 percent, to 24.595. The S&P 500 was down 25 points, or 1 percent, to 2,656 and the Nasdaq was down 73 points to 6,978.

Apple and Merck were the only Dow components in positive territory.

Central bankers say that the recent correction in U.S. stocks will have little impact on the broader economy, a sign that they still plan to raise interest rates at least three times in 2018.

"More volatility in the markets, and maybe addressing some of the excesses and imbalances in the markets, by having a little more volatility, may be a healthy thing," Federal Reserve Bank of Dallas President Robert Kaplan said in an interview with Bloomberg Television.

"I'll be watching carefully to make sure it does not transmit, though, to tighter financial conditions or spillover to the economy," he also said. "But at this point, I'd be optimistic that it won't."

T-Mobile US Inc. (TMUS) revealed earnings for its fourth quarter that climbed compared to the same period last year. The bottom line rose to $2.71 billion, or $3.11 per share, up from $390 million, or $0.45 per share, in last year's fourth quarter. Revenue for the quarter rose 5.2 percent.

Yum! Brands (YUM) announced a new partnership with online and mobile takeout food-ordering company Grubhub Inc. (GRUB) to drive incremental sales to KFC and Taco Bell restaurants in the U.S. Grubhub shares rose sharply.